Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $292,382

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $155,286,165 · related or exempt $155,242,273 · unrelated business $43,892

• 2b · Program service revenue: RESEARCH REVENUE

  total $1,585,405 · related or exempt $1,585,405

• 3 · Investment income

  total $5,911,748 · excluded $5,911,748

• 6a · Gross rents

  real property $982,738

• 6b · Less rental expenses

  real property $1,281,374

• 6c · Rental income or loss

  real property -$298,636

• 6d · Net rental income or loss

  total -$298,636 · excluded -$298,636

• 7a · Gross sales of assets other than inventory

  securities $614,788

• 7b · Less cost or other basis and sales expenses

  securities $0 · other assets $2,641

• 7c · Gain or loss

  securities $614,788 · other assets -$2,641

• 7d · Net gain or loss

  total $612,147 · excluded $612,147

• 8b · Fundraising events: direct expenses

  $2,512

• 8c · Net income from fundraising events

  total -$2,512 · excluded -$2,512

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $923,702 · program services $461,851 · management and general $461,851

• 7 · Other salaries and wages

  total $96,784,183 · program services $90,515,228 · management and general $6,268,955

• 8 · Pension plan contributions

  total $4,469,257 · program services $4,179,772 · management and general $289,485

• 9 · Other employee benefits

  total $13,288,450 · program services $12,427,724 · management and general $860,726

• 10 · Payroll taxes

  total $5,155,686 · program services $4,821,739 · management and general $333,947

• 11a · Fees: management

  total $3,806,853 · program services $3,557,335 · management and general $249,518

• 11f · Fees: investment management

  total $568,268 · program services $377,835 · management and general $190,433

• 11g · Fees: other

  total $8,357,717 · program services $8,243,821 · management and general $113,896

• 12 · Advertising and promotion

  total $10,094 · program services $9,432 · management and general $662

• 13 · Office expenses

  total $580,842 · program services $467,369 · management and general $113,473

• 14 · Information technology

  total $116,364 · program services $93,631 · management and general $22,733

• 16 · Occupancy

  total $22,371,884 · program services $18,001,322 · management and general $4,370,562

• 17 · Travel

  total $289,398 · program services $232,861 · management and general $56,537

• 19 · Conferences, conventions and meetings

  total $17,216 · program services $13,853 · management and general $3,363

• 20 · Interest

  total $10,198,701 · program services $6,781,001 · management and general $3,417,700

• 22 · Depreciation, depletion and amortization

  total $2,520,363 · program services $2,203,987 · management and general $316,376

• 23 · Insurance

  total $1,162,761 · program services $1,162,761

• 24a · Other expenses: MEDICAL SUPPLIES

  total $18,942,176 · program services $18,942,176

• 24b · Other expenses: BAD DEBT

  total $7,357,335 · program services $7,357,335

• 24c · Other expenses: OTHER SUPPLIES

  total $986,421 · program services $793,714 · management and general $192,707

• 24d · Other expenses: INCOME TAX

  total $2,036 · program services $2,036

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $224,944,948 · end of year $354,920,038

• 2 · Savings and temporary cash investments

  beginning of year $2,388,761 · end of year $849,812

• 3 · Pledges and grants receivable

  beginning of year $49,999,994 · end of year $40,027,744

• 4 · Accounts receivable

  beginning of year $21,692,886 · end of year $14,042,319

• 7 · Other notes and loans receivable

  beginning of year $100,000 · end of year $100,000

• 8 · Inventories for sale or use

  beginning of year $8,953 · end of year $17,819

• 9 · Prepaid expenses and deferred charges

  beginning of year $0 · end of year $113,846

• 10a · Land, buildings and equipment: cost or other basis

  $74,581,787

• 10b · Land, buildings and equipment: accumulated depreciation

  $24,103,511

• 10c · Land, buildings and equipment, net

  beginning of year $33,879,438 · end of year $50,478,276

• 11 · Investments: publicly traded securities

  beginning of year $85,829,818 · end of year $161,119

• 13 · Investments: program-related

  beginning of year $42,925,083 · end of year $48,440,922

• 14 · Intangible assets

  beginning of year $15,952,372 · end of year $14,357,135

• 15 · Other assets

  beginning of year $29,293,412 · end of year $45,726,129

• 17 · Accounts payable and accrued expenses

  beginning of year $470,211,527 · end of year $552,093,354

• 19 · Deferred revenue

  beginning of year $916,166 · end of year $1,105,680

• 20 · Tax-exempt bond liabilities

  beginning of year $241,018,635 · end of year $241,088,424

• 23 · Secured mortgages and notes payable

  beginning of year $20,173,006 · end of year $20,191,475

• 24 · Unsecured notes and loans payable

  beginning of year $3,469,240 · end of year $2,476,816

• 25 · Other liabilities

  beginning of year $35,294,249 · end of year $50,984,555

• 27 · Net assets without donor restrictions

  beginning of year -$314,067,158 · end of year -$348,790,074

• 28 · Net assets with donor restrictions

  beginning of year $50,000,000 · end of year $50,084,929

The filer's explanations (Part III)

PART I, LINE 3

THE COMPENSATION, BENEFITS, AND EQUITY COMMITTEE (THE "COMMITTEE") OF THE ADVOCATE HEALTH, INC. BOARD OF DIRECTORS HAS AUTHORITY AS THE WFUBMC BOARD DELEGATES TO IT, FOR THE REVIEW AND APPROVAL OF SENIOR EXECUTIVE COMPENSATION, INCLUDING SENIOR EXECUTIVE INCENTIVE PLANS. NO MEMBER OF THE COMMITTEE IS AN EMPLOYEE OF WFUBMC. THE COMMITTEE RELIES UPON AN EXTERNAL, INDEPENDENT COMPENSATION CONSULTANT EXPERIENCED IN HEALTHCARE TO PROVIDE THE COMMITTEE WITH COMPENSATION COMPARABILITY DATA FOR NEW EXECUTIVE POSITION APPOINTMENTS AND FOR COMPENSATION REVIEWS FOR EXISTING EXECUTIVES. THE CONSULTANT, WHICH IS RETAINED DIRECTLY BY THE COMMITTEE, PROVIDES THIRD-PARTY INFORMATION AND EVALUATES THE COMPETITIVENESS AND REASONABLENESS OF EXECUTIVE COMPENSATION AND BENEFITS PROGRAMS IN RELATION TO MARKET PRACTICES FOR SIMILARLY SITUATED HEALTHCARE ORGANIZATIONS. THE COMMITTEE MAKES ITS DECISIONS WITH RESPECT TO EXECUTIVE COMPENSATION IN ACCORDANCE WITH WFUBMC POLICIES, IRS REGULATIONS, AND STANDARD CORPORATE GOVERNANCE PRACTICES. SUCH POLICIES INCLUDE ADHERENCE TO EXECUTIVE COMPENSATION PHILOSOPHY AND REVIEW PROCESSES; PROCESSES ENSURING COMMITTEE MEMBER AND COMPENSATION CONSULTANT INDEPENDENCE; USE OF VALID MARKET COMPARISONS OF DATA FROM HEALTHCARE ORGANIZATIONS OF SIMILAR SIZE, STRUCTURE, AND COMPLEXITY AND ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS, PER IRS GUIDELINES. MINUTES OF THE DELIBERATIONS OF THE COMMITTEE ARE MAINTAINED IN THE ADVOCATE HEALTH, INC. LEGAL DEPARTMENT.

PART I, LINES 4A-B

CERTAIN DIRECTORS, OFFICERS, AND HIGHLY COMPENSATED EMPLOYEES OF THE FILING ORGANIZATION PARTICIPATED IN AND/OR RECEIVED PAYMENTS FROM A NON-QUALIFIED DEFERRED COMPENSATION PLAN (RESTORATION OR SERP) AND/OR RECEIVED PAYMENTS FOR SEVERANCE. THE DETERMINATION OF THE PAYMENT AMOUNT FROM NON-QUALIFIED DEFERRED COMPENSATION PLANS FOLLOWED THE EMPLOYMENT ORGANIZATION'S COMPENSATION PROCEDURES. THE FOLLOWING DIRECTORS, OFFICERS, AND HIGHLY COMPENSATED EMPLOYEES RECEIVED PAYMENTS FROM THE FILING ORGANIZATION OR A RELATED ORGANIZATION FOR SEVERANCE AND/OR PAYMENTS FROM NON-QUALIFIED DEFERRED COMPENSATION PLANS DURING THE CURRENT TAX YEAR: SEVERANCE PAYMENTS: NONE FOR 2023 NON-QUALIFIED DEFERRED COMPENSATION PAYMENTS: BRADLEY A. CLARK 80,393 CATHLEEN WHEATLEY, DNP 151,939 J. MCLAIN WALLACE, JR. 114,290 J. REID MORGAN 112,500 JULIE A. FREISCHLAG, MD 624,800 KEVIN P. HIGH, MD 1,052,872 LISA MARSHALL 51,857 MICHAEL T. WAID 91,177 TODD BANKHEAD 75,221

PART I, LINE 7

CERTAIN OFFICERS, KEY EMPLOYEES AND FACULTY MEMBERS HAVE INCENTIVE COMPENSATION COMPONENTS CONTAINED IN THEIR EMPLOYMENT AGREEMENTS, AND THROUGH MEDICAL CENTER OR APPLICABLE RELATED ORGANIZATIONS' POLICIES. THESE ARE OFTEN GOAL-BASED AND ARE DETERMINED IN THE COURSE OF EVALUATION OF THE INDIVIDUAL'S PERFORMANCE BY HIS/HER DEPARTMENT CHAIR, SUPERVISOR OR THE COMPENSATION COMMITTEE OF THE BOARD, AS APPLICABLE.

FORM 990, PART VII, LINE 5 - COMPENSATION FROM UNRELATED ORGANIZATION

THE FOLLOWING OFFICERS WERE COMPENSATED BY THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY ("CMHA", DOING BUSINESS AS ATRIUM HEALTH), AN AFFILIATED BUT UNRELATED ORGANIZATION, FOR SERVICES RENDERED TO THE ORGANIZATION. SEE PART VII AND SCHEDULE J, PART II FOR THEIR COMPENSATION. EUGENE A. WOODS BRADLEY A. CLARK TERRY G. WILLIAMS

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• WAKE FOREST HEALTH NETWORK LLC

  HEALTHCARE · NC · income $135,327,424 · assets $96,740,880

  Directly controlled by WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER

• HPCA LLC

  REAL ESTATE · NC · income $0 · assets $12,578,601

  Directly controlled by WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER

• WAKE AIR CARE LLC

  HEALTHCARE · NC · income $16,399,136 · assets $8,272,526

  Directly controlled by WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• MS LAND HOLDING CO LLC

  DEBT FINANCED 514 · REAL ESTATE · NC · 55.51% owned · share of income $725 · share of assets $4,835,150 · general or managing partner

  Directly controlled by WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER

• HHI-WS LLC

  INVESTMENT · INVESTMENT · NC · 95.24% owned · share of assets $10,000,000

  Directly controlled by WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• HIGH POINT HEALTH CARE VENTURES INC

  C · REAL ESTATE · NC